Voyager Digital files for bankruptcy protection
Following Three Arrows Capital last week
Crypto broker Voyager Digital has filed for bankruptcy, just a week after suspending withdrawals, trading, and deposits on its platform.
On Tuesday, Voyager, and its two affiliates, filed for Chapter 11 bankruptcy protection in the Southern District of New York. The Toronto-based firm estimated it had between $1 billion and $10 billion in assets and over 100,000 creditors.
“Voyager’s platform was built to empower investors by providing access to crypto asset trading with simplicity, speed, liquidity, and transparency. While I strongly believe in this future, the prolonged volatility and contagion in the crypto markets over the past few months, and the default of Three Arrows Capital on a loan from the company’s subsidiary, Voyager Digital, LLC, require us to take deliberate and decisive action now,” wrote CEO Stephen Ehrlich in a press release.
“The chapter 11 process provides an efficient and equitable mechanism to maximize recovery,” he added.
This comes shortly after Sam Bankman-Fried’s Alameda Research lent the struggling broker $200 million in cash and 15,000 Bitcoin, with a total value of about $485 million.
Voyager claimed Three Arrows Capital, the crypto hedge fund that filed for bankruptcy last week, owed it more than $673 million from loans of 15,250 Bitcoin and $350 million in USDC.
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